Vivos Therapeutics Announces Pricing of $4.3 Million Registered Direct Offering of Common Stock Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Vivos Therapeutics (NASDAQ: VVOS), a medical device company specializing in sleep-related breathing disorders treatments, has announced a $4.3 million registered direct offering of common stock. The offering involves the sale of 1,363,812 shares at $3.15 per share, priced at-the-market under Nasdaq rules. No warrants are being issued. The offering is expected to close around September 20, 2024, with H.C. Wainwright & Co. acting as the exclusive placement agent. Vivos intends to use the net proceeds for working capital and general corporate purposes. The offering is made pursuant to a previously filed and effective shelf registration statement.

Positive

• Raised $4.3 million in gross proceeds to strengthen the company's financial position
• Offering priced at-the-market, potentially indicating fair valuation
• No warrants issued, avoiding potential future dilution
• Funds to be used for working capital and general corporate purposes, providing operational flexibility

Negative

• Issuance of new shares may lead to dilution of existing shareholders' ownership
• At-the-market pricing suggests premium, potentially indicating weak demand
• Additional offering expenses and placement agent fees will reduce net proceeds

Insights

Financial Analyst

Vivos Therapeutics' $4.3 million registered direct offering is a strategic move to bolster its financial position. The pricing at $3.15 per share, at-the-market, suggests investor confidence in the company's current valuation. However, this 43% dilution of existing shares could pressure the stock price in the short term.

The absence of warrants in this deal is positive, as it avoids potential future dilution. The intended use of proceeds for working capital indicates the company may be addressing liquidity concerns. Investors should monitor Vivos' cash burn rate and progress in commercializing its sleep disorder treatments to gauge the long-term impact of this capital raise.

Medical Research Analyst

Vivos Therapeutics' focus on sleep-related breathing disorders, particularly obstructive sleep apnea (OSA), positions it in a growing market. The company's proprietary treatments for both adults and children with moderate to severe OSA could be a significant differentiator in the competitive medical device landscape.

This capital injection could accelerate the development and commercialization of Vivos' technologies. However, investors should closely monitor upcoming clinical data and FDA approvals to assess the company's potential for market penetration. The success of Vivos' treatments in addressing all severities of OSA in adults could be a game-changer if supported by strong clinical evidence.

LITTLETON, Colo., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Vivos Therapeutics, Inc. (“Vivos” or the “Company”) (NASDAQ: VVOS), a leading medical device and technology company specializing in the development and commercialization of highly effective proprietary treatments for sleep related breathing disorders (including all severities of obstructive sleep apnea (OSA) in adults and moderate to severe in children), announced today that it has entered into definitive securities purchase agreements with institutional investors for the issuance and sale of an aggregate of 1,363,812 shares of its common stock at a purchase price of $3.15 per share in a registered direct offering priced at-the-market under the rules of the Nasdaq Stock Market. No common stock purchase warrants are being issued in this offering.

The closing of the offering is expected to occur on or about September 20, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering are expected to be approximately $4.3 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

The securities described above are being offered and sold by the Company pursuant to a “shelf” registration statement on Form S-3 (Registration No. 333-262554), including a base prospectus, previously filed with the Securities and Exchange Commission (“SEC”) on February 7, 2022, and declared effective by the SEC on February 14, 2022. The securities to be issued in the registered direct offering are being offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to, and describing the terms of, the registered direct offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus relating to the registered direct offering, when available, may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Vivos Therapeutics, Inc.

Vivos Therapeutics, Inc. (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing innovative diagnostic and treatment methods for patients suffering from breathing and sleep issues arising from certain dentofacial abnormalities such as obstructive sleep apnea (OSA) and snoring in adults and children. The Vivos Method (comprised of Vivos’ Complete Airway Repositioning and/or Expansion (CARE) and other oral appliance therapy combined with adjunctive therapies) represents the first clinically effective nonsurgical, noninvasive, nonpharmaceutical, and cost-effective solution for treating mild to severe OSA in adults and moderate to severe OSA in children. It has proven effective in over 45,000 patients treated worldwide by more than 2,000 trained dentists.

The Vivos Method includes treatment regimens that employ the proprietary CARE appliance therapy and other appliances that alter the size, shape, and position of the soft tissues that comprise a patient’s upper airway and/or palate. The Vivos Method opens airway space and may significantly reduce symptoms and conditions associated with mild-to-severe OSA in adults and moderate to severe OSA in children, such as lowering Apnea Hypopnea Index scores. Vivos also employs a marketing and distribution model where it collaborates with sleep-treatment providers to offer patients OSA treatment options and help promote sales of its appliances.

Cautionary Note Regarding Forward-Looking Statements

This press release and statements of the Company’s management made in connection therewith contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including statements related to the completion of the registered direct offering, the satisfaction of customary closing conditions related to the registered direct offering and the intended use of proceeds from the registered direct offering. Words such as “may”, “should”, “expects”, “projects,” “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, “goal” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve significant known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond Vivos’ control. Actual results (including the actual results of the initiatives described herein on Vivos’ future revenues and results of operations or the anticipated benefits of the Company’s new marketing and distribution model described herein) may differ materially and adversely from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: (i) the risk that Vivos may be unable to implement revenue, sales and marketing strategies that increase revenues, (ii) the risk that some patients may not achieve the desired results from using Vivos’ products, (iii) risks associated with regulatory scrutiny of and adverse publicity in the sleep apnea treatment sector; (iv) the risk that Vivos may be unable to secure additional financings on reasonable terms when needed, if at all or maintain its Nasdaq listing and (v) other risk factors described in Vivos’ filings with the Securities and Exchange Commission (“SEC”). Vivos’ filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, Vivos expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Vivos’ expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.

Vivos Investor Relations and Media Contact:

Bradford Amman, CFO
investors@vivoslife.com

FAQ

What is the size and price of Vivos Therapeutics' (VVOS) recent stock offering?

Vivos Therapeutics (VVOS) announced a registered direct offering of 1,363,812 shares of common stock at $3.15 per share, totaling approximately $4.3 million in gross proceeds.

When is the expected closing date for Vivos Therapeutics' (VVOS) stock offering?

The closing of Vivos Therapeutics' (VVOS) stock offering is expected to occur on or about September 20, 2024, subject to customary closing conditions.

How does Vivos Therapeutics (VVOS) plan to use the proceeds from its stock offering?

Vivos Therapeutics (VVOS) intends to use the net proceeds from the offering for working capital and general corporate purposes.

Who is the placement agent for Vivos Therapeutics' (VVOS) registered direct offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for Vivos Therapeutics' (VVOS) registered direct offering.